BILL NUMBER: AB 2511	CHAPTERED  09/19/00

	CHAPTER   532
	FILED WITH SECRETARY OF STATE   SEPTEMBER 19, 2000
	APPROVED BY GOVERNOR   SEPTEMBER 18, 2000
	PASSED THE ASSEMBLY   AUGUST 30, 2000
	PASSED THE SENATE   AUGUST 29, 2000
	AMENDED IN SENATE   AUGUST 28, 2000
	AMENDED IN SENATE   AUGUST 25, 2000
	AMENDED IN SENATE   AUGUST 14, 2000
	AMENDED IN SENATE   JUNE 13, 2000
	AMENDED IN ASSEMBLY   APRIL 13, 2000

INTRODUCED BY   Assembly Member Steinberg
   (Coauthors:  Assembly Members Cardoza, Cox, Pescetti, and Thomson)

   (Coauthors:  Senators Costa, Johnston, and Ortiz)

                        FEBRUARY 24, 2000

   An act to add Chapter 9.5 (commencing with Section 44299.50) and
Chapter 9.7 (commencing with Section 44299.75) to Part 5 of Division
26 of the Health and Safety Code, relating to air quality.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 2511, Steinberg.  Air quality:  mobile source emissions.
   (1) Under existing law, there is a motor vehicle inspection
program designed to ensure that the reduction in vehicle emissions of
hydrocarbons, carbon monoxide, and oxides of nitrogen meet or exceed
the reductions required by the federal Clean Air Act.  The program
is intended to endeavor to achieve these vehicle emission reductions
as expeditiously as practicable, but not later than the deadlines
established by the amendments enacted to the federal Clean Air Act in
1990.  Existing law also establishes the Carl Moyer Memorial Air
Quality Standards Attainment Trust Fund, administered by the State
Air Resources Board, to provide grants to offset the incremental cost
of projects that reduce emissions of oxides of nitrogen (NOx) from
specified mobile sources in California.
   This bill would enact the Sacramento Emergency Clean Air and
Transportation Program, to be administered by the Sacramento Area
Council of Governments.  Pursuant to the program, grant awards for
eligible onroad emission-reducing projects would be made by the
council.
   This bill would also enact the San Joaquin Valley Emergency Clean
Air Attainment Program, to be administered by the San Joaquin Valley
Air Pollution Control District.  Pursuant to the program, grant
awards for eligible onroad and off-road emission-reducing projects
would be made by the district.
   Chapter 91 of the Statutes of 2000 creates the Traffic Congestion
Relief Fund and appropriates money from that fund for allocation for
various projects, including programs that establish incentives for
the reduction of emissions from heavy-duty diesel engines operating
within the Sacramento region and the San Joaquin Valley region.
   This bill would specify that moneys allocated from that fund for
the above programs may be used to fund the programs established by
this bill.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  The Legislature finds and declares all of the
following:
   (a) The Sacramento federal ozone nonattainment area is a
geographical and meteorological entity not reflected by political
boundaries.
   (b) The region has serious and severe air pollution problems
caused by the operation of more than 1,300,000 vehicles within the
region, combined with the operation of heavy-duty commercial vehicles
moving statewide goods through the region.
   (c) Despite the implementation of improved emission controls on
motor vehicles and stationary sources, rapid population growth and
increases in vehicle miles traveled in and through the region has
resulted in severe air pollution that is expected to worsen in future
years.
   (d) The state and federal governments have adopted ambient air
quality standards in order to protect public health, and it is in the
public interest that those standards be attained as expeditiously as
possible.
   (e) In order to achieve and maintain these air quality standards,
protect public health, and preserve necessary economic growth, a
Sacramento Emergency Clean Air and Transportation Program is required
to be implemented in order to provide the maximum achievable
reduction in emissions from existing sources and to provide for the
maximum feasible reduction or mitigation of emissions resulting from
future population growth, increased vehicle mileage, and other new
sources of onroad emissions.
   (f) In order to successfully develop and implement a comprehensive
program for the attainment and maintenance of state and federal
ambient air quality standards in the region, the air quality
management districts in the Sacramento federal ozone nonattainment
area must be delegated additional resources and responsibility from
the state, particularly with respect to reducing motor vehicle
emissions from public fleets and from those vendor fleets that
contract with public entities.
   (g) In order to successfully implement a coordinated air quality
strategy for the region, the actions and responsibilities of local
and regional authorities with respect to the implementation of air
pollution control strategies must be fully integrated among the air
districts comprising the Sacramento federal ozone nonattainment area.
  These districts include the El Dorado Air Pollution Control
District, Feather River Air Quality District, Placer County Air
Pollution Control District, Sacramento Metropolitan Air Quality
Management District, and Yolo-Solano Air Quality Management District.

  SEC. 2.  The Legislature further finds and declares all of the
following:
   (a) The San Joaquin Valley Air Basin is currently classified as a
"serious" nonattainment area under the ambient air quality standards
for ozone.
   (b) The San Joaquin Valley Air Basin did not meet the deadline for
attaining compliance with the air quality standards for ozone in
1999 and as a result will soon be reclassified as a "severe"
nonattainment area, and will have a new attainment deadline of 2005.

   (c) In order to attain compliance with the ambient air quality
standards by the 2005 deadline, the San Joaquin Valley Air Basin must
maintain three consecutive years in compliance, and thus must be in
compliance beginning in 2003.  To attain compliance with those
standards, the San Joaquin Valley Air Basin must immediately achieve
significant reductions in emissions from mobile and stationary
sources.
   (d) The early introduction of low-emission technology for
heavy-duty vehicles provides the best opportunity for emissions
reduction in the San Joaquin Valley Air Basin.
  SEC. 3.  Chapter 9.5 (commencing with Section 44299.50) is added to
Part 5 of Division 26 of the Health and Safety Code, to read:

      CHAPTER 9.5.  SACRAMENTO EMERGENCY CLEAN AIR AND TRANSPORTATION
PROGRAM

   44299.50.  As used in this chapter, the following terms have the
following meanings:
   (a) "Advanced introduction costs" means the costs of the project
less a baseline cost that would otherwise be incurred by the
applicant in the normal course of business.  "Advanced introduction
costs" may include, but are not limited to, incremental costs,
additional operational costs, facility modifications, additional
staff training, fueling infrastructure, and costs associated with
off-cycle vehicle replacement, as determined by the Sacramento Region
Districts.
   (b) "Attainment" means meeting the National Ambient Air Quality
Standards for ozone.
   (c) "Conformity" means that a transportation program, project, and
plan promulgated by the Sacramento Area Council of Governments is
able to successfully comply with Sections 7410 and 7506 of Title 42
of the United States Code, so as to qualify for an approval, license,
or permit, or to obtain financial assistance, from the federal
agencies specified in those sections.
   (d) "Covered engine" includes any internal combustion engine or
electric motor and drive powering a covered source.
   (e) "Covered source" includes onroad heavy-duty diesel vehicles
and other onroad high-emitting diesel engine categories, as
determined by SACOG.
   (f) "Covered vehicle" includes any vehicle or piece of equipment
powered by a covered engine.
   (g) "New very low-emission vehicle" means a vehicle that qualifies
as a very low emission vehicle when it is a new vehicle, as defined
in Section 430 of the Vehicle Code, or that is modified with the
approval and warranty of the original equipment manufacturer to
qualify as a very low-emission vehicle within 12 months of delivery
to an owner for private or commercial use.
   (h) "NOx" means oxides of nitrogen.
   (i) "Program" means the Sacramento Emergency Clean Air and
Transportation Program created by this chapter.
   (j) "Repower" means replacing an engine with a different engine.
The term "repower," as used in this chapter, generally refers to
replacing an older, uncontrolled engine with a new,
emissions-certified engine, although replacing an older
emissions-certified engine with a newer engine certified to lower
emissions standards may be eligible for funding under this program.
   (k) "Retrofit" means making modifications to the engine and fuel
system such that the retrofitted engine does not have the same
specifications as the original engine.
   (l) "SACOG" means the Sacramento Area Council of Governments.
   (m) "Sacramento federal ozone nonattainment area" means the area
defined by the United States Environmental Protection Agency in the
Federal Register notice dated November 6, 1991 (56 Fed. Reg. 56694).

   (n) "Sacramento Region Districts" means the El Dorado Air
Pollution Control District, Feather River Air Quality District,
Placer County Air Pollution Control District, Sacramento Metropolitan
Air Quality Management District, and Yolo-Solano Air Quality
Management District.
   (o) "Very low-emission vehicle" means a vehicle with emissions
significantly lower than otherwise applicable baseline emission
standards or uncontrolled emission levels determined pursuant to the
criteria in Section 44282.
   44299.51.  There is hereby created the Sacramento Emergency Clean
Air and Transportation Program.  The program shall be administered by
SACOG.  The implementation of the program, in whole or in part, may
be delegated by SACOG to the Sacramento Region Districts.
   The program may provide grants to offset the advanced introduction
costs of eligible projects that reduce onroad emissions of NOx
within the Sacramento federal ozone  nonattainment area.  Eligibility
for grant awards shall be determined by SACOG, or delegated by SACOG
to the Sacramento Region Districts, in accordance with this chapter.

   44299.52.  (a) Eligible projects may include, but shall not be
limited to, any of the following:
   (1) Purchase of new very low- or zero-emission covered vehicles or
covered engines to replace older heavy-duty diesel vehicles or
engines.
   (2) NOx emission-reducing retrofit of covered engines, or
replacement of old diesel engines and drives powering covered sources
with newer diesel engines and drives certified to more stringent NOx
emissions standards than the engine being replaced.
   (3) Purchase and use of NOx emission-reducing add-on equipment for
covered vehicles.
   (4) Implementation of practical, low-emission retrofit
technologies, repower options, advanced technologies, or low sulfur
diesel or alternative fuel mixtures for covered engines and vehicles.

   (b) In determining eligible projects, SACOG or the Sacramento
Region Districts shall not exclude any technology based on the type
of fuel utilized by that technology.
   (c) Eligible applicants may be any individual, company, or public
agency that owns one or more covered vehicles that operate primarily
within the Sacramento federal ozone nonattainment area or otherwise
contribute substantially to the NOx emissions inventory in the
Sacramento federal ozone nonattainment area.
   (d) The program shall provide grants to eligible projects that
help reduce onroad NOx emissions on a timely and cost-effective basis
within the Sacramento federal ozone nonattainment area in order to
maximize the reduction in NOx emissions from available funds, thereby
aiding the area in its efforts to achieve applicable air quality
conformity goals in 2002 and 2005.
   44299.53.  (a) Funds to implement the program shall be provided
from the amount allocated from the Traffic Congestion Relief Fund for
the purposes of paragraph (118) of subdivision (a) of Section
14556.40 of the Government Code.
   (b) To ensure that emission reductions are obtained as needed from
pollution sources, funds provided as described in subdivision (a)
shall be segregated as follows:
   (1) Not more than 1 percent of the funds provided as described in
subdivision (a) shall be allocated to program support and outreach
costs incurred by SACOG or the Sacramento Region Districts directly
associated with implementing the program pursuant to this chapter.
   (2) Not more than 2 percent of the funds provided as described in
subdivision (a) shall be allocated to direct program outreach
activities.
   (3) The balance shall be used to offset costs of eligible
projects.
   (c) SACOG, in consultation with the Sacramento Region Districts,
shall specify procedures by which evaluation and review of eligible
projects shall be accomplished.
   (d) The Sacramento Region Districts shall include an evaluation of
the emission benefits provided by those eligible projects that are
implemented in the Sacramento federal ozone nonattainment area in the
milestone reports submitted in 2002 and 2005 to the United States
Environmental Protection Agency pursuant to subsection (g) of Section
7511a of Title 42 of the United States Code.
   (e) Funds provided to SACOG as described in subdivision (a) shall
not be expended on any NOx control retrofit technology unless that
technology has been determined to be eligible for use in the program
pursuant to Section 44299.54.
   44299.54.  On or before January 10, 2001, the executive officer of
the state board shall make a determination as to the eligibility of
NOx retrofit technologies for use in the program, and may make
additional determinations of eligibility of NOx technologies after
January 10, 2001.  In order to be determined eligible by the
executive officer of the state board, each NOx retrofit technology
shall have, at a minimum, the ability to reduce onroad heavy-duty
diesel emissions of NOx by 10 percent or more and shall be durable
and effective in reducing emissions, as determined by the executive
officer of the state board.
   44299.55.  All emissions reductions and credits achieved as a
result of programs initiated under this chapter shall be used to
fulfill local and regional commitments to air quality standards.  Any
additional reductions or credits that may exist after the local or
regional commitment to air quality is fulfilled may be used to
fulfill the state's commitment to air quality standards and
attainment.
  SEC. 4.  Chapter 9.7 (commencing with Section 44299.75) is added to
Part 5 of Division 26 of the Health and Safety Code, to read:

      CHAPTER 9.7.  SAN JOAQUIN VALLEY EMERGENCY CLEAN AIR ATTAINMENT
PROGRAM

   44299.75.  As used in this chapter, the following terms have the
following meanings:
   (a) "Advanced introduction costs" means the costs of the project,
less a baseline cost that would otherwise be incurred by the
applicant in the normal course of business.  "Advanced introduction
costs" may include, but shall not be limited to, incremental costs,
additional operational costs, facility modifications, additional
staff training, fueling infrastructure, and costs associated with
off-cycle vehicle replacement, as determined by the district.
   (b) "Attainment" means meeting the National Ambient Air Quality
Standards (NAAQS) for ozone.
   (c) "Covered engine" includes any internal combustion engine or
electric motor and drive powering a covered source.
   (d) "Covered source" includes onroad and off-road heavy-duty
diesel vehicles and other onroad and off-road high-emitting diesel
engine categories, as determined by the San Joaquin Valley Air
Pollution Control District.
   (e) "Covered vehicle" includes any vehicle or piece of equipment
powered by a covered engine.
   (f) "District" means the San Joaquin Valley Air Pollution Control
District.
   (g) "New very low-emission vehicle" means a vehicle that qualifies
as a very low-emission vehicle when it is a new vehicle, as defined
in Section 430 of the Vehicle Code, or that is modified with the
approval and warranty of the original equipment manufacturer to
qualify as a very low-emission vehicle within 12 months of delivery
to an owner for private or commercial use.
   (h) "NOx" means oxides of nitrogen.
   (i) "Program" means the San Joaquin Valley Emergency Clean Air
Attainment Program created by this chapter.
   (j) "Repower" means replacing an engine with a different engine.
The term "repower," as used in this chapter, generally refers to
replacing an older, uncontrolled engine with a new,
emissions-certified engine, although replacing an older
emissions-certified engine with a new engine certified to lower
emissions standards may be eligible for funding under this program.
   (k) "Retrofit" means making modifications to the engine and fuel
system such that the retrofitted engine does not have the same
specifications as the original engine.
   (l) "San Joaquin Valley federal ozone nonattainment area" means
the area defined by the United States Environmental Protection Agency
on page 56699 of Volume 56 of the Federal Register dated November 6,
1991.
   (m) "Very low-emission vehicle" means a vehicle with emissions
significantly lower than otherwise applicable baseline emission
standards or uncontrolled emission levels determined pursuant to the
criteria in Section 44282.
   44299.76.  (a) There is hereby created the San Joaquin Valley
Emergency Clean Air Attainment Program.  The program shall be
administered and implemented by the district.
   (b) The program may provide grants to offset the advanced
introduction costs of eligible projects that the district determines
aid in the reduction of onroad and off-road emissions of NOx within
the San Joaquin Valley federal ozone nonattainment area.
   (c) Eligibility of projects for grant awards shall be determined
by the district in accordance with this chapter.
   44299.77.  (a) Eligible projects may include, but shall not be
limited to, any of the following:
   (1) Purchase of new very low- or zero-emission covered vehicles or
covered engines to replace older heavy-duty diesel vehicles or
engines.
   (2) NOx emission-reducing retrofit of covered engines, or
replacement of old diesel engines and drives powering covered sources
with newer diesel engines and drives certified to more stringent NOx
emissions standards than the engine being replaced.
   (3) Purchase and use of NOx emission-reducing add-on equipment for
covered vehicles.
   (4) Implementation of practical, low-emission retrofit
technologies, repower options, advanced technologies, or low sulfur
or alternative fuel mixtures for covered engines and vehicles.
   (b) In determining eligible projects, the district shall not
exclude any technology based on the type of fuel utilized by that
technology.
   (c) Eligible applicants may be any person or public agency that
owns one or more covered vehicles that operate primarily within the
San Joaquin Valley federal ozone nonattainment area or otherwise
contribute substantially to the NOx emissions inventory in the San
Joaquin Valley federal ozone nonattainment area, as determined by the
district.
   (d) The program shall provide grants to eligible projects that
help reduce onroad and off-road NOx emissions on a timely and
cost-effective basis within the San Joaquin Valley federal ozone
nonattainment area in order to maximize the reduction in NOx
emissions from available funds, thereby aiding the area in its
efforts to achieve applicable air quality goals.
   44299.78.  (a) Funds to implement the program shall be provided
from the amount allocated from the Traffic Congestion Relief Fund for
the purposes of paragraph (100) of subdivision (a) of Section
14556.40 of the Government Code.
   (b) Funds from the account may be reserved by the district for
local governments within the San Joaquin Valley federal ozone
nonattainment areas that adopt an eligible program pursuant to this
chapter.
   (c) To ensure that emission reductions are obtained as needed from
pollution sources, any funds provided as described in subdivision
(a) shall be segregated as follows:
   (1) Not more than 1 percent of the funds shall be allocated to
program support and outreach costs incurred by the district directly
associated with implementing the program pursuant to this chapter.
   (2) Not more than 2 percent of the funds provided as described in
subdivision (a) shall be allocated to direct program outreach
activities.
   (3) The balance shall be used to offset costs of eligible
projects.
   (d) Funds provided as described in subdivision (a) shall be
allocated to the district upon the approval by the district of an
application from an eligible applicant regarding an eligible project.
  The district may determine the maximum amount of annual funding
each applicant may receive.
   (e) Funds provided as described in subdivision (a) shall not be
expended on any NOx control retrofit technology unless the technology
has been determined to be eligible for use in the program pursuant
to Section 44299.79.
   44299.79.  On or before January 10, 2001, the executive officer of
the state board shall make a determination as to the eligibility of
NOx retrofit technologies for use in the program, and may make
additional determinations of eligibility of NOx technologies after
January 10, 2001.  In order to be determined eligible by the
executive officer of the state board, each NOx retrofit technology
shall have, at a minimum, the ability to reduce onroad heavy-duty
diesel emissions of NOx by 10 percent or more and shall be durable
and effective in reducing emissions, as determined by the executive
officer of the state board.
